As Bitcoin continues it's meteoric rise this early 2021, we wonder if there will be an end in sight. Sure, there was a slight pull back from 10th January to 27th January, but this was just another opportunity for Bitcoin to go higher.
I am not a financial market analyst of any kind but I just want to share my thoughts as to how BTC/USD has reacted so far and where I think it will go next.
As we can see on the daily timeframe of BTCUSD, the pair(BTCUSD) is on a steady uptrend, however it lost some steam around the 40,000 level and pulled back slightly to around the 30,000 level.
The pullback formed a downtrend line and once this down trend line was broken on 2nd February, It opened up a potential run upwards to the 40,000 level. This resistance level was then broken with a strong bullish candle and has continued upwards since.
From this daily timeframe, the pair is likely to continue this upward movement until another pullback occurs forming a resistance. It could pull back to an area of support to go higher or lower if the newly formed support level is broken.
On the 4Hr timeframe, we can see that the pair is fully extended. A minor resistance was formed at the 52,000 level and it was also broken for more upward movement. The pair may keep going upward but it is possible to see a little pullback to the 52,000 level which coincides with the 4Hr trendline as seen above.
It is also possible that the pair could break the trendline and move lower back to test the 40,000 Daily resistance now as support.
If we take a look at the 1Hr chart, price is still moving steadily upwards but the trendline is becoming steeper upwards. Any retracement could see price pull back to the 52,000 level and bounce back upwards or break it and pull further back to the 4Hr trendline.
This is my opinion on the movement of BTCUSD.
NOTE: Not a financial adviser or expert of any sort.
Thank you for reading.